SBP assigns mandatory targets to banks to increase housing, construction financing
Last updated on: 16 July,2020 08:55 am
SBP assigns mandatory targets to banks to increase housing, construction financing
KARACHI (APP) - To promote housing and construction of buildings activities in the country, as envisaged by the Government of Pakistan (GoP), State Bank of Pakistan (SBP) has decided to set a mandatory target for banks to extend mortgage loans and financing for developers and builders.
Banks will be required to increase their housing and construction of building loan portfolios to at least 5 percent of their private sector credit by the end of December 2021, said a news release on Wednesday.
Earlier, Prime Minister Imran Khan announced that Naya Pakistan Housing scheme will be given subsidy of Rs 30 billion. He also announced that those who invest in the construction sector will not be asked about their sources of income.
Briefing the media after the National Coordination Committee for Housing and Construction, he said that Pakistan needs construction to come out of this difficult time. “The government has reduced taxes,” he said and added reducing taxes will create cheaper homes.
The prime minister said that no government in the past has ever made such subsidies and decisions for construction.
“I want people to take full advantage of it,” the prime minister said adding that we have allocated Rs 330 billion for the construction industry.
Imran Khan went on to say that the government has to strengthen the country’s economy through housing and construction industries.